Mumbai: Shares of United Spirits on Monday soared by over 27 percent to 52 week high after the UK-based Diageo Plc said it will buy 53.4 percent stake in the company for Rs 11,166.5 crore in a multi-structured deal. (Agencies)
The scrip of the Vijay-Mallya led company opened the day on a robust note and surged 27.23 percent to Rs 1,730 to touch the year's high on the BSE, in an overall flat stock market.
Similar was the trend at NSE, where the stock zoomed up by 27.15 percent to a 52-week high of Rs 1,729. The sharp gain in United Spirits was in contrast to other UB group shares, which traded flat or in the negative zone.
United Breweries Holdings Ltd shares fell by 5 percent after a positive start. United Breweries was trading 1.51 percent lower, while Kingfisher Airlines was quoting 0.67 per cent higher.
Following the completion of the stake acquisition, which took six years to materialise, India will become the second largest market for Diageo after the US. In a joint statement on Friday, the UK-based firm said it has entered into an agreement with United Breweries (Holdings) Ltd (UBHL) and United Spirits Ltd (USL) to acquire 27.4 percent stake in USL, the top liquor company in India at Rs 1,440 per share aggregating Rs 5,725.4 crore.
Further, Diageo will also acquire 19.3 percent stake in USL at a price of Rs 1,440 per share from the UBHL group, the USL Benefit Trust, Palmer Investment Group Ltd and UB Sports
Management (two subsidiaries of USL) and SWEW Benefit Company (a company established for the benefit of certain USL employees).
The company will seek approval from USL shareholders for a preferential allotment to Diageo at a price of Rs 1,440 per share of new shares amounting to 10 percent of the post-issue enlarged share capital of USL.
It further said it will launch a tender offer to acquire a further 26 percent stake in USL at a price of Rs 1,440 per share.
Mumbai: Shares of United Spirits on Monday soared by over 27 percent to 52 week high after the UK-based Diageo Plc said it will buy 53.4 percent stake in the company for Rs 11,166.5 crore in a multi-structured deal.